Today, President Bush traveled to Kansas City, Missouri to discuss
with seniors the benefits of the new Medicare-approved Drug Discount
Cards. Six months after the President signed into law the historic
Medicare Prescription Drug, Improvement, and Modernization Act of 2003,
seniors are able to achieve real savings on their prescription
medicines by signing up for the cards.

More than three million seniors are already enrolled in one of the
card programs, and the President encourages seniors to take advantage
of the savings offered by the cards. Seniors can use the card to save
15 to 30 percent off the usual retail price of most brand name drugs
and more on generics at neighborhood pharmacies. Low-income seniors
struggling with high drug costs will be able to get these savings as
well as an additional $600 a year credit - or $1,200 over the next 18
months - to help pay for prescriptions.

Real Savings for Seniors

Seniors often have had to pay full price for drugs. Through
the Medicare-approved drug discount program, the purchasing power of
seniors is finally being pooled to provide real savings on
prescriptions. And the drug card program also gives seniors
unprecedented information on drug prices to comparison shop.

Seniors can use the card to save 15 to 30 percent off the usual
retail price of most brand name drugs and more on generics at
neighborhood pharmacies.

For Medicare beneficiaries who are comfortable with
mail-order, a recent study found savings of 7 to 20 percent or more
on mail-order prices for brand name drugs through Medicare-approved
cards in comparison to some Internet sources.

Potential savings from the cards are even greater when seniors
choose generics. A new CMS study shows that savings on generic
drugs range from 37 to 65 percent below the average generic prices paid
by all Americans. Generic drugs are just as safe and effective as
brand-name drugs in the United States, and generally cost about 70
percent less.

Low-income seniors can get these savings and an additional $600
a year - $1,200 over the next 18 months. The $600 credit is
available only through cards with the Medicare-approved seal. There is
no enrollment fee on any card for people who qualify for the $600
low-income credit. More than 7 million low-income beneficiaries may
qualify, and for millions of low-income beneficiaries, these savings
translate into 30 to 70 percent or more reductions in drug costs.

Beneficiaries who qualify for the low-income credit will receive
the entire $600 amount no matter when they sign up in 2004, and a
pro-rated amount depending on when they sign up in 2005. Any of
the $600 credit not used in 2004 will be carried over in their account
for use in 2005.

Beneficiaries who exhaust the $600 subsidy may get additional
savings. A growing list of drug manufacturers has agreed to make
many of their products available at a nominal price to beneficiaries
who have used up their $600 subsidy on prescription medicines. These
seniors will benefit in three important ways from the cards: 1) lower
prices on their medicines; 2) a $600 subsidy to help them buy these
medicines at the discounted prices; and 3) availability of drugs at a
nominal price through manufacturers once they've spent the subsidy.

The new drug card will not affect benefits under other federal
programs. The Medicare law stipulates that the discounts and
subsidies available through the cards will not result in a reduction or
loss of benefits under any other federal program, including the food
stamp program.

Medicare beneficiaries who signed up early are already using
their cards today to get real savings on their prescription drugs.

Information to Help Seniors Choose A Card

Seniors can learn how to sign up for the card and find the best
card for them by calling 1-800-MEDICARE or by visiting www.medicare.gov.

Medicare customer service representatives will review the caller's
drug needs and help them select the card that best meets their needs in
less than 15 minutes on average.

Beneficiaries can help by having the following information ready
when contacting 1-800-MEDICARE: zip code; list of prescription drugs,
including dosage; income to determine if they are eligible for the $600
credit; and any special preferences, such as a particular pharmacy they
like.

The web site, www.medicare.gov has price
comparison tools that seniors can use themselves. For the first time,
seniors can get information on actual drug prices so they can
comparison shop.

Just the Beginning of Savings for Seniors

The Medicare-approved drug discount cards are just the beginning
of savings for seniors. In 2006, seniors without coverage will be
able to join a Medicare-approved plan that will cut their yearly drug
costs roughly in half, in exchange for a monthly premium of about $35.
In many cases, the savings will be even greater. For example:

Seniors with no drug coverage and monthly drug costs of $200 will
save more than $1,700 on drug costs each year.

Seniors with no
drug coverage and monthly drug costs of $800 will save nearly $5,900 on
drug costs each year.

Seniors will be protected against high
out-of-pocket costs with Medicare covering 95% of drug costs over
$3,600 per year.

The new law will help make
employer-subsidized retirement benefits more secure by providing
Federal subsidies to employers that continue to provide this
coverage.

Low-income seniors will receive additional help paying for their
medicines.

There will be no additional premium, no deductible and low
co-payments ($2 for generic or $5 for brand-name drugs) for seniors
with limited savings and incomes at or below 135% of poverty
(individuals with yearly incomes under $12,123 and senior couples under
$16,362).

There will be a reduced premium, a $50 deductible,
and a 15% co-insurance (85% of their drug costs will be covered) for
seniors with limited savings and incomes between 135% and 150% of the
Federal poverty level (individuals with yearly incomes under $13, 470
and senior couples under $18,180).

Under a modernized Medicare, private health plans will compete
for seniors' business by providing better coverage at affordable
prices-helping to control the costs of Medicare by using
market-place competition, not government price-setting. And seniors
will be able to choose the health care plan that best fits their
needs-instead of having that choice made by the government.